Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1887-06-23
1 GIGANTIC SVTNDLE.
The Liabilities Of the Fidelity National
Bank Placed at Not Less
Than S6,000,000.
Wiltshire was Simply tae Agent Of liar.
pec in Couduc ing That Immense
Wheat Corner ID Chicago,
Harper, baldwin and H0pRIos Re
arrested on Two Charges.
TIE LIARLITIEs IMMENSE.

THE LIABILITIES IMMENSE.
CGNCGSNATI, Ono, June CIT is now
common talk on the streets that the LA
bilities of the Fidelity bank Will reach the
stupendous sum of 81, 100000 wiale the
assets dTindle IN proportion. It seems O
foregone conclusion that the depOsitOrs
viii get next to nothing. Il is stated tc-
day that memorandum, which is q sub
stitute for collateral, shows that Wiltshire
used 81, 200, 600 of the banks money, ard
thst colIaterals for other loans were ny
pothecSted IN New York and elsewhere.
1t is the belief OF some that Wiltshire aC,-
ed a. the agent Of Harper in conducting
the wheat deal and was not really . Dor
rover.
The morning papers are full CT matter
connected in various ways with the Fidel-
itv Nltional Banks closing. Among
otder things, it is stated that Bank Elk
aminer Powell on Monday evening de-
handed s statement from the bank, aud
received one showing balance on hand
of SLIGO, 0oO cash Then calling for &
view OF this mOney, he was amazed to be
shown LEAD pencil memorandum reading
wiltshire, EckeTt & Co, 5000, 900; j. W.
Wiltshire, SIS, 600, and SO on through the
long list. There was no collateral, 10
security whatever. Mr.. Baldwin and Mr..
HOPKINS were unable 10 make any eX-
plala,ion, and Mr.. Harper could offer
none. Even after this, IL is said an offer
to permit the bank to continue was made
il these three Ii en- were expelled and new
capital bought in, but when in
curry was made IS to how much
would be required, the answer
was, 81 5000 at leasl. That staggered
tue directors and although they still
hoped to form & reorganization, il was
most probable thGt further examination
would reveal E further deficit. This de-
tered them, and the fac, that Harper
concealed from the directors his cOEntc
Liou win the wheat deal. He is sci 10
have sdmitted Yesterday that nc did not
20 into the wheat deal himself, but that
he houored an oYerdraft for Wiltshire for
S4S, coo Snd then put in the rest t. save
that. He charges the whole break u the
action Of the Chicago Board OF Trade
making all wheat regular. Eugene Pow
ell, the bank examiner, is credited with
saying that the condition of the
bank is awful. He said it
was singular how Harper had de-
ceived everybody about the matter.
In this connection iG may be recalled that
when the wheat panic occurred IN ChiC&-
20 and rumors were out of 3 run on the
Fidelity Bank, Harper stated repeatedly
TO parties asking for Information that he
did not know VINO was IN the wheat deal,
and went SO far as TO say he did not be-
lieve it Wss managed at all in Cincinnati,
from (NalitnTnio nd
Cleveland. More attachments upon
Harper's property have been made, and
everything he has is now tied up.
The publication was made here that
Messrs. swift & Lyman, attorneys for the
Exchange National Bank Of Chicago, were
here to push claim Of $3.50, 900 against
the Fidelity Bank. The truth is, the eX-
g@t amount was Sl9S, 900. Last Saturday
Swift presented q certificate OF deposit
and demanded money. He vas told the
American Exchange did not have that
sum to it's credit. He then demanded the
balance, whatever it might be, and was
told payment had been stopped. In view
of the apparent negligence Of President
Briggs, Swift and other directors, there
isstrong talk of causing their arrest, 81
though it would be hard to find even a
suffering creditor in Cincinnati to de-
mand it. One who knows, but who de-
cllnes to give his name, says ten days
ago he, with President Swift, went over
the called loan account and found It all
right. He says he is certain that Har-
per had done all this crooked work
within the past ten days or = week and it
could not well be known. He does not
think there is any reflection on President
Swift. While there is no effect upon the
banks from the failure, there is a marked
restriction of business. Business men |
stand appalled, as the glazing features Of |
this great fraud are contemplated.
Bank Examiner Eugene Powell has |
been exceedingly busy all day in mis- at
tempt to get knowledge of the real con- /
-ition of the Fidelity bank. The receiver !
ass not yet undertaken the responsible |
sfes of his Office. Mr.. Powell to-day made |
which justified him under the !
advice of District Attorney Burnett and !
lis assistant, Bruce, to cause the arrest |
second time of Messrs. Harper, Baldwin
md Hopkins. This is q new feature Of the
Ease. as itconsists ola chargeof conspiracy
10 defraud by issuing on June II three
traits of 100000 each in favor of VIII
shire, Eckert & Co. upon the Chemical
National Bank of New York, signed By
q. L. Hopkins, assistant cashier The
charge is conspiracy to commit an
,ffense against the laws of the United
States by unlawfully and wilfully missp-
plying the funds and credits of banking
Institution in pursuance OF which pur-
rose they issued these drsfEs. Another aft
iavit charges the same persons with con-
piracy to commit an offense against the
United States laws by issuing on
Nay 13 last, and causing TO
re transmitted to the Comptroller Of
currency, false and fraudulent report Of
aid National Bank at the close Of bust
less, May Is, 1887. This said bank did
lot have in its possession as stated in
cid report, S63, 900 in legal tender notes
nd S226, $40 in silver certificates. They
moving these amounts were not so end
making the statement in pursuance OF d
onspiracy to clear certain officers OF
aid National Bank TO prevent an sgent
eing appointed to examine the affairs OF
aid bank" The arrests were male
pom these tffidavits which were sworn
0 by Mr.. Powell late this after